Cryptocurrencies are digital currencies with no physical representation and use cryptography to process transactions. Cryptography is used to keep balance sheets and records confidential on decentralized networks, i.e., networks with no centralized administrator or government controlling data processing or protecting users’ personal information.
How Does Cryptocurrency Work?
Cryptocurrencies are virtual, encrypted keys that act as currency and are not governed by any central bank or organization. They are maintained by a decentralized network called a blockchain.
How to Buy Bitcoins?
You can purchase Bitcoins from many stores such as localbitcoins.com and cex.io for depositing money or via online exchanges such as kraken.com, which allow you to buy Bitcoin directly in USD or EUR. Or via automated QR Code payment platforms where a code appears on the screen, and you can pay without inputting your banking details.
How Do you Invest in Crypto for Beginners?
1. Read up on the latest news in the cryptocurrency industry.
The best way to start is to read up on the cryptocurrency industry news. Read about ICOs, new companies, and upcoming developments in the industry.
2. Identify your strategy
Have a strategy, learn about different transaction types and analyze the risk involved. You can be passive or active, long-term or short-term, etc.
3. Buy your cryptocurrency of choice
Identify which cryptocurrency you wish to invest in and buy directly using fiat currency via a trading exchange such as Coinbase or Kraken. Or you can also purchase them via an intermediary broker such as xcoins.io after linking your bank account with them and moving money into the bill to buy cryptocurrency directly in USD/EUR.
4. Research your cryptocurrency
Do a bit of research on the market to get a feel of the cryptocurrency’s price in a few months. Keep an eye out for potential forks, and ensure you know how these forks are processed. It’s essential to constantly monitor the price changes and their market value as they may change quickly, and you could miss out on significant gains.
Cryptocurrencies can be considered a new type of asset class. However, they are also not entirely new. Money like bitcoin is being created on a blockchain specifically to serve as a medium of exchange and not as a store of value or virtual security. Although this makes cryptocurrencies different from traditionally issued money, they are still similar to tradable assets such as stocks and bonds.
Dil Bole Oberoi
